ACER Acertec

    RNS Number : 8501U
  Acertec PLC
  20 May 2008
   


    20 May 2008

    Acertec plc

    AGM Trading Statement


    Acertec plc, one of the UK's leading manufacturers of engineered steel products for use in the automotive and construction markets, is
holding its Annual General Meeting at 10.00 am today. At the meeting James Kerr-Muir, Chairman, will tell shareholders:  

    "Overall trading for the Group in the first four months of the year has been in line with the Board's expectations. Based on trading in
this period, and assuming no significant change in market conditions, particularly for the BRC division, we continue to expect that
Acertec's overall performance in 2008 will be broadly similar to that in 2007. 

    The Group is making progress in its discussions with both its existing and potential new lenders on arranging new medium-term
facilities. 

    BRC

    The construction market in the UK is now reflecting the impact of sharply rising raw material costs and difficult credit conditions. 

    The unprecedented movement in the price of steel, which has doubled since the end of 2007, is currently beneficial for some areas of
BRC's business and unhelpful for others. After such a strong rise, future movements in the price of steel, which will influence the outturn
for the year for BRC, are difficult to predict. BRC continues to enjoy a strong order book in the UK, but the rate of call-off from this
order book is being affected by the slowdown in certain parts of the construction sector.  

    BRC's Specialty Products operations have continued to experience mixed results, in part due to the slowing housing sector. However,
under its new managing director, these operations are expected to show an improving performance through the balance of the year.

    BRC's operations in East Asia, which continue to be under strategic review, and in Ireland, are performing well. 

    Stadco

    Acertec's Stadco division has started the year well, with turnover ahead of the prior year. As anticipated, however, margins have been
under pressure and trading results have been lower as a consequence, albeit slightly above expectations.
      
    As previously announced, Stadco is seeing a high level of quotation activity for new work, including projects for new customers, some of
which is expected to generate business in the second half of the year and which should lead to improved results in 2009.

    Stadco's project in St. Petersburg, Russia, which is managed by Stadco and is a 50/50 joint venture with Gestamp Automocion SL, is
progressing well and the new factory is expected to be completed on time and on budget, with production starting as planned at the beginning
of 2009. The initial financing of this investment continues to be funded by Gestamp. Acertec is considering ways of funding the Group's own
equity contribution of up to EUR15 million to this joint venture. This will be needed by the middle of this year in order to avoid dilution
of the Group's shareholding in the joint venture."
    - ends -

    Enquiries:

 Acertec plc                                     01789 403 070
 John Sword, Chief Executive
 Jonathan Cook, Finance Director
 Hawkpoint Partners Limited (Nominated Adviser)  020 7665 4500
 David Renton
 Weber Shandwick Financial                       020 7067 0700
 Nick Oborne / Rachel Taylor 


    Notes to Editors: 

    Acertec is one of the UK's leading manufacturers of engineered steel products for use in the automotive and construction markets. The
Company consists of two divisions: Its BRC division is the UK's largest supplier of engineered steel products (re-bar and mesh) used in
concrete construction and Stadco is the UK's largest supplier of body-in-white pressings and sub-assemblies to automotive Original Equipment
Manufacturers ("OEMs"). 

    Further information about Acertec can be found on the website www.acertec.com
This information is provided by RNS
The company news service from the London Stock Exchange
 
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